Access via sign-up on the event app or by invitation only. English-French-Portuguese translation available.
Stablecoins are moving from crypto trading into African banking and payments. Businesses and households are using the dollar-backed cryptocurrencies for payroll, trade and to settle cross border payments at a flat 1.5% fee, versus 8% average. The Bank for International Settlements warns that “widespread adoption could affect macroeconomic and financial stability”. Central Bankers are also hesitant, Lesetja Kganyago, Governor of the South African Reserve Bank, said in February “there is a lot of hype around stablecoins”, but that “it’s difficult to tell what the benefits will end up being”. Meanwhile commercial banks – such as Credit Bank in Kenya – are integrating stablecoins into their cross-border payment services. This roundtable discusses how banks can leverage stablecoins as well as the effects on financial systems for central banks.
Key points
- Which banking use cases can make stablecoins relevant beyond crypto and remittances
- How should regulators treat reserves, custody, convertibility and Anti-Money Laundering compliance?
- Should banks lead adoption, or leave the market to fintechs and offshore players?